ASIC Warns Australians About Crypto Trading Scams

Australian authorities are warning that scammers are increasingly using fake crypto trading platforms to trick victims into handing over money through sophisticated investment scams. Many of these operations are promoted through WhatsApp, Telegram, Discord, Facebook groups, and other online communities where scammers spend weeks building trust before pushing victims toward fraudulent platforms.

Key takeaways

• ASIC is warning Australians about sophisticated fake crypto trading platforms promoted through messaging apps, investment groups, and social media communities.
• Victims are often allowed to withdraw small amounts to make the platform look legitimate before scammers push for larger deposits.
• AI-generated content is making investment scams harder to spot, including fake endorsements, testimonials, videos and cloned branding.
• Strong digital security habits still matter. Secure your accounts with unique passwords, multi-factor authentication and trusted security software to reduce exposure to scams and account compromise.

The Australian Securities and Investments Commission (ASIC), together with the National Anti-Scam Centre, recently warned that scammers are using highly convincing fake crypto trading websites designed to trick people into handing over their money.  ASIC’s alert comes as Moneysmart research shows heavy crypto exposure among younger Australians, with 72% of Gen Z respondents seeing crypto ads on social media and 41% reporting they had been approached about crypto investments.

According to ASIC, these fraudulent platforms often look professional and legitimate, complete with fake trading dashboards, fabricated profit charts, and even customer support representatives. But behind the scenes, no real trading takes place.

How the scam works

The scams often begin inside messaging groups focused on investing, stock trading, or cryptocurrency discussions, where scammers pose as successful traders, investment mentors or members of “exclusive” crypto communities.

Some scams even use stolen Australian Financial Services Licence (AFSL) details or impersonate legitimate businesses to appear trustworthy.

ASIC has warned that scammers are increasingly using artificial intelligence to make scams more polished and harder to spot.

Once trust is built, victims are encouraged to join a crypto platform that supposedly delivers high returns or insider opportunities. The platforms that lure users are surprisingly convincing, and that’s a huge problem for targets. They come with fake profit dashboards and are sometimes accompanied by customer service features.  Users will even see small returns that grow steadily in their accounts, and some victims are even allowed to withdraw small amounts initially. This tactic is designed to create trust and encourage larger deposits later.

However, whenever the user attempts to withdraw any significant funds, the scammers begin their excuses. Users suddenly face withdrawal delays, unexpected “tax payments,” verification fees, or demands for additional deposits before funds can supposedly be released. In many cases, the platform disappears entirely.

How can users stay safe

ASIC says Australians should take extra care before investing in crypto platforms promoted online, especially through social media, messaging apps, or investment groups. It’s also reminding users that businesses offering virtual asset services in Australia (including crypto exchanges) must be registered with AUSTRAC and comply with anti-money laundering and counter-terrorism financing obligations.

Investors can check whether a business is registered through AUSTRAC’s Virtual Asset Service Provider Register (VASPR).

ASIC also encourages Australians to follow three simple steps:

• Don’t share personal information or act on investment advice you find on social media or in messaging app groups. Be especially cautious if someone is pressuring you to invest quickly or keeps insisting on “exclusive” opportunities.
• Take time to research what you’re investing in. Verify whether the platform appears on AUSTRAC’s VASPR and search online for scam warnings, complaints, or reports linked to the website or company.
• Contact your bank if you’ve transferred money or shared sensitive financial information, and report suspicious activity to Scamwatch to help protect others.

Further steps to defend against scammers

Here are a few practical ways people can better protect themselves:

• Use scam detection tools before clicking links or investing: Tools like Bitdefender Scamio can help analyze suspicious messages, investment pitches, screenshots, or links you receive through social media and messaging apps.
• Check suspicious websites before entering information: Fraudulent crypto platforms often imitate legitimate exchanges. Bitdefender Link Checker can help identify potentially dangerous or scam-related URLs.
• Protect your accounts with strong authentication: Use unique passwords and enable app-based multi-factor authentication wherever possible, especially for crypto wallets, exchanges, and email accounts.
• Be cautious with influencer-driven investment hype: Scammers frequently exploit FOMO and social proof to pressure victims into acting emotionally rather than rationally.
• Keep devices protected and updated: Some fake investment schemes also distribute malware or credential-stealing software disguised as trading apps or investment tools.

The safest approach is to slow down, verify independently, and never trust investment opportunities simply because they look popular online.